Prime Minister Mark Carney announced an ambitious plan to double Canada’s non-U.S. exports over the next decade. Speaking on Wednesday, Carney highlighted the growing economic uncertainty caused by American tariffs, which are stifling investment and threatening key Canadian industries like autos, steel, aluminum, and lumber. The announcement comes ahead of the government’s budget release on November 4, 2025, which is expected to outline strategies to bolster Canada’s global trade presence.

Carney emphasized that Canada’s decades-long reliance on its southern neighbor has become a liability. "The close economic ties that once defined our strength have now become vulnerabilities," he said in an evening address to the nation. He pointed to U.S. President Donald Trump’s aggressive tariff policies, which he compared to trade barriers not seen since the Great Depression. Trump’s provocative rhetoric, including suggestions that Canada could become "the 51st state," has further strained relations between the two nations.

"The U.S. has fundamentally altered its trade stance, and we cannot rely on a single foreign partner anymore," Carney declared. "We must take charge of our economic future." More than 75% of Canada’s exports currently go to the U.S., with daily cross-border trade valued at approximately $3.6 billion CAD ($2.7 billion USD). Canada remains the top export destination for 36 U.S. states, but the looming 2026 review of the Canada-U.S. free trade agreement has heightened concerns about economic stability.

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To diversify its trade portfolio, Canada is intensifying efforts to strengthen ties with global economic powerhouses like India and China. Carney’s government is prioritizing new trade agreements and partnerships to reduce dependency on the U.S. market. "We are re-engaging with the world," he said, signaling a pivot toward emerging markets and established global players.

Carney also underscored Canada’s position as an "energy superpower," citing its vast natural resources as a cornerstone of its economic strategy. The country holds the world’s third-largest oil reserves and fourth-largest natural gas reserves. It supplies about 60% of U.S. crude oil imports and 85% of U.S. electricity imports. Additionally, Canada is the largest foreign supplier of steel, aluminum, and uranium to the U.S., and its 34 critical minerals and metals are vital for American national security, attracting significant Pentagon investment.

The tariff-induced chill has already impacted Canadian businesses, with many holding back on investments due to uncertainty. Industries like autos and lumber, which employ thousands of Canadians, are particularly vulnerable. Carney acknowledged the challenges ahead, warning that transforming the economy will require time and sacrifice. "I will always be honest about the tough choices we face," he said. "This won’t happen overnight, but we are committed to building a resilient, globally competitive Canada."

Recent months have seen a slight easing of tensions as Carney pursues a trade deal with the Trump administration, but the threat of tariffs continues to loom large. The prime minister’s push for diversification aims to safeguard Canada’s economy against further disruptions while positioning the country as a stronger player on the global stage.

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